North Carolina Down Payment Assistance Programs

Online Payments - These systems would be the deposit Assistance System and the Mortgage Credit Certificate.

If you meet the requirements for one of these programs and you purchase a home between January 1, 2009 and December 1, 2009, you might also qualify for the $8,000 tax credit only enacted into law.

First, who's a first-time Home Buyer? A First Time Home Buyer is someone who has not owned a house in the prior three years. Here is exactly the same qualifying definition for the $8,000 tax credit.

What is a Mortgage Credit Certificate and Who Qualifies?

All home owners can claim an itemized deduction for mortgage interest.

If you qualify for the MCC, you'll be able to claim 20% of the interest you pay as a credit in your federal income taxes on your own mortgage. You are able to save around .

You'll manage to combine this if you do qualify for the MCC, for 2009. This might reduce the tax liability of a buyer's by $10,000.

Who Qualifies for an MCC?

Household income is defined as the “gross income of the mortgagor and any man anticipated to reside in the home who's 18 years old or older.”

House price limits that apply in Orange, Durham and Chatham Counties and the income are listed below.

MCC Income Limits 1 Man $61,500 2 Men $61,500 3 Persons $70,500 4 Persons $70,500

MCC Sales Cost Limitations New House $220,000 Existing Dwelling $210,000

Home buyers that need help with their down payment and closing prices might be able to get down payment assistance - or, put simply, interest-free, deferred second mortgages up to $8,000. The customer just has to pay and the load would pay around $8,000 of the remaining balance.

This program has more stringent income limitations than the MCC program outlined above. Like the MCC application, it may be used in combination with the new $8,000 tax credit on home purchases between December 1, 2009 and January 1, 2009. The down payment assistance, nonetheless, cannot be employed in conjunction together with the MCC. This is an either or situation.

The income and house price limitations that apply in Durham, Orange and Chatham Counties are given below.

Down Payment Assistance Income Limitations

1 Individual $39,950 2 Men $45,650 3 Men $51,350 4 Persons $57,050

Down Payment Assistance Sales Price Limits New House $210,000 Existing Home $210,000